Orlando Italy, established in association with Germany’s Orlando Management, has raised its first fund aimed at turnaround investments in Italy closing €30 million ahead of its €150 million target.
The structure of the fund will follow Orlando’s special situations German funds. The second of these closed in November last year on €255 million.
The fund will be managed by a team of Italian investment professionals including Enrico Ceccato and Paulo Scarlatti. They have long-term experience and market expertise in complex situations. They have attracted institutional investors from both Europe and North America.
Orlando’s special situations funds target companies with sales in the range of €50 million to €500 million, which have strong earnings growth potential but which face complex problems that require expertise to solve.
The causes of such special situations include unproductive capital expenditure; uncontrolled expansion; unresolved succession problems; gridlock between management, shareholders, banks or other creditors; one-time adverse events and strategic management mistakes.
Immediately following a deal closing, Orlando Italy will implement a plan to turn the company around. The strategic plan emphasises earnings growth, seeking to prepare companies for sale at significant multiples of cost.
Target companies will be in manufacturing, industrial wholesale and capital goods but not in software, the internet or biotech.
MVision Private Equity Advisers acted as the exclusive global placing agent. Bonelli Erede Pappalardo acted as legal counsel to Orlando Italy.